Chery becomes China’s first automaker with exports of over 500,000
Apr 26, 2011
On April 19, at Chery booth, Auto Shanghai 2011, as Zhou Biren, vice president of Chery Automobile Co., Ltd. and general manager of Chery International, delivered the 500,000th vehicle to Chery Brazil distributor, Chery became China’s first automaker with exports of over 500,000.
In 2001, Chery’s first new model “Fulwin” was launched. Samir, a Syrian automobile dealer who is participating in Auto China in Beijing, fell in love with the model at first sight. He came to Wuhu where Chery is located and placed an order for 10 vehicles. In 2002, Samir got an order for 75 Chery vehicles and sold them out in Syria. Chery redoubled exports to Syria with 1,000 vehicles in 2003 and 3,000 in 2004… Samir brothers have become automobile distribution magnates in Syria, and Chery has become a banner among homemade auto brands, with exports remaining steady at around 40% of the total exports of homemade passenger vehicles.
“ We hope to introduce our vehicles to the United States, to Manhattan, just like China’s home appliance industry which has gone global,” said Yin Tongyue, president and general manager of Chery.
Afterwards, with the rapid growth of the international market, under the principles of “globalization based on localization”, Chery mapped out the brand strategy of “building a world-famous brand”, portrayed a clear route map for internationalization and embarked on comprehensive globalization.
Firstly, Chery has developed the first group of overseas consumers and initially established the brand recognition. To further improve the capacity for sales and after-sales service and cultivate its brand popularity and overseas consumer loyalty, Chery has constructed an overseas marketing network of 1,000 sales outlets through a decade’s intensive efforts, thus boosting its overseas sales and popularity.
Secondly, Chery has established overseas plants as bases for international development. By establishing manufacturing bases in some major markets, Chery has strengthened radiation to neighboring markets, reduced marketing cost, sharpened market competitiveness and evaded high tariffs in some countries, thereby boosting Chery’s share in local markets.
So far, Chery has established 12 overseas manufacturing bases in countries and regions like Egypt, Iran, Russia, Malaysia, Uruguay, Thailand, Vietnam and Ukraine, and four are under construction in countries like Brazil and Venezuela.
In Brazil, within only more than a year, Chery Tiggo has approached the top 10 of the monthly SUV list. Now, Tiggo is available in large cities like Brasilia and Rio de Janeiro. In September 2010, Chery and the Sao Paulo State Government entered into a framework agreement as the first Chinese automaker that has built a plant in Brazil. With an area of 1 million square meters and a total investment of USD 400 million, Chery Brazil Industry Park will build a plant with an annual output of 150,000 vehicles, and will introduce and manufacture models such as Chery A1 and Fulwin 2, all of which are Flex Fuel vehicles meeting the requirements of the Brazilian market. In the future, Chery will successively introduce other models according to the market development. In Egypt, within only five years, Chery has developed four welding lines for DME Assembly Plant with an annual output of 35,000 vehicles. The sales volume reached 18,000 in 2010, accounting for 7.5% of the Egyptian auto market, has accomplished a parts localization rate of 45%, and gained support from all sides including the Egyptian government. Through radiation of the manufacturing base in Egypt, Chery has effectively promoted the development of the Middle East and North African markets. In Ukraine, the localization rate of part of Chery products has hit 51%. Under the relevant provisions of the CIS free trade agreement, such Chery products will be able to enter Russia and other CIS countries with zero tariffs, thus boosting Chery’s product competitiveness in the CIS market. Besides, the plants in Uruguay and Indonesia manufacture over 20,000 modified Tiggo, A1 and QQ3 vehicles a year.
Chery has sold vehicles to over 80 countries and regions in Asia, Europe, Africa, South America and North America, has retained the export title among domestic car brands since 2003, and has currently contributed half of exports to China’s passenger vehicle industry.
With export of the 500,000th vehicle as a mark, Chery has achieved the initial strategic objective of internationalization and preliminarily completed its global layout. Through international trade, Chery has established sound sales networks in some developing countries and emerging markets; has built manufacturing bases in some major markets to develop a certain capacity for radiating to neighboring markets; and has made the overseas sales account for over 20% of the total sales.
The reason why Chery became China’s first auto brand with exports of over 500,000 is that Chery has a clear overseas strategy, worked out a full set of effective globalized systems, progressively switched from “going out”-exporting vehicles to “going in”-establishing bases, taking roots abroad and basing itself on the global market.
In R & D, with Anhui, Beijing and Shanghai, as well as overseas research institutes in Tokyo, Turin and Australia as bases, Chery will fully integrate global R & D resources and progressively establish a unified global platform for general R & D. Aiming at the international market, Chery will also strengthen overseas adaptability and localized R & D to effectively support its product planning and meet its requirements for quality improvement.
In purchase system, Chery will accomplish platform-based general purchase management, establish a global supplier management system, include the world’s most suitable suppliers in the management system, establish a mechanism for fast linkage to suppliers, optimize the allocation of global purchase resources, support with adaptive and localized purchase, and further increase the technical level of parts and product quality.
At the same time, Chery has spared no efforts in its weakness in international competition-after-sales service and spares supply. Chery has preliminarily established an after-sale service network covering over 80 countries and regions to offer consumers worldwide fast, convenient and high quality after-sales service. Besides, Chery has established international after-sale service training center to sharpen the maintenance skills of overseas distributors and enhance its overseas brand popularity and image.
Chery, the leading Chinese auto enterprise, is taking firm steps toward the objective of exporting 1,000,000 vehicles after achieving exports of 500,000!